HP Inc. reported third-quarter adjusted profit of 83 cents per share, beating analyst expectations of 69 cents, as revenue rose 12.5% to $15.7 billion. The company attributed the upside to pricing actions, share gains in premium categories, and increased demand for AI-enabled PCs, though PC unit shipments declined 16%.
Third-quarter printing revenue fell 2% to $3.9 billion, while Personal Systems operating margins narrowed to 4.6% from 5.2% in the prior quarter. CFO Karen Parkhill noted that commodity-driven price increases would weigh on fourth-quarter revenue, which is expected to grow year-over-year only due to pricing power and AI PC adoption.
HP raised its full-year adjusted earnings guidance to $3.19–$3.29 per share, up from a prior range of $2.90–$3.10, and lifted fourth-quarter adjusted EPS guidance to 69–79 cents, above the 67-cent consensus. The revisions include an estimated 19-cent benefit from U.S. tariff refunds, following a $100 billion refund issued by the Trump administration after a U.S. Supreme Court ruling struck down the tariffs.
The company’s outlook reflects broader industry challenges, including a global memory chip shortage driven by AI data center demand. HP’s peers, including Dell Technologies, Apple, and Lenovo, are also navigating similar supply constraints and pricing dynamics. Shares of HP fell 9% in extended trading after the results, paring earlier gains to a 4.73% decline during regular market hours.
